The correct option is C stroma of chloroplasts and peroxisomes
During photorespiration, the oxygen consuming reactions occur in the stroma of chloroplasts and peroxisomes. In chloroplasts, RuBP (5 carbon compound) on receiving oxygen gets converted into PGA (3 carbon compound) and phosphoglycolate (2 carbon compound). In peroxisomes, glycolate on receiving more oxygen gets converted into glyoxylate.